Market-moving events and their role in portfolio optimization of generations X, Y, and Z
We examine how generations X, Y, and Z might react to market-moving events over short- and long-term horizons to maintain an optimal balance among risk, return, and investor preferences. To analyze various portfolio variants, we use data on selected global assets and several types of economic and no...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Sciendo
2023-12-01
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| Series: | International Journal of Management and Economics |
| Subjects: | |
| Online Access: | https://doi.org/10.2478/ijme-2024-0001 |
| _version_ | 1797303125864873984 |
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| author | Iwanicz-Drozdowska Małgorzata Rogowicz Karol Smaga Paweł |
| author_facet | Iwanicz-Drozdowska Małgorzata Rogowicz Karol Smaga Paweł |
| author_sort | Iwanicz-Drozdowska Małgorzata |
| collection | DOAJ |
| description | We examine how generations X, Y, and Z might react to market-moving events over short- and long-term horizons to maintain an optimal balance among risk, return, and investor preferences. To analyze various portfolio variants, we use data on selected global assets and several types of economic and non-economic events for 2000-2021H1, applying the mean-variance optimization procedure. According to our results, in optimal portfolios, fixed-income assets dominate and are the main driver of portfolio adjustments. Portfolios with short-term horizons with less risk-averse investors and those for generation Z are the most reactive to analyzed types of events. None of the events per se creates an extraordinary opportunity to increase returns. However, expansionary monetary policy generates the greatest potential for incremental returns. Our findings provide practical implications for investors on how to adjust their portfolios in response to significant market events. |
| first_indexed | 2024-03-07T23:48:27Z |
| format | Article |
| id | doaj.art-b4238e7978fa4a4f92aa1729185f0573 |
| institution | Directory Open Access Journal |
| issn | 2543-5361 |
| language | English |
| last_indexed | 2024-03-07T23:48:27Z |
| publishDate | 2023-12-01 |
| publisher | Sciendo |
| record_format | Article |
| series | International Journal of Management and Economics |
| spelling | doaj.art-b4238e7978fa4a4f92aa1729185f05732024-02-19T09:03:46ZengSciendoInternational Journal of Management and Economics2543-53612023-12-0159437139710.2478/ijme-2024-0001Market-moving events and their role in portfolio optimization of generations X, Y, and ZIwanicz-Drozdowska Małgorzata0Rogowicz Karol1Smaga Paweł2Collegium of Management and Finance, SGH Warsaw School of Economics, Warsaw, PolandCollegium of Management and Finance, SGH Warsaw School of Economics, Warsaw, PolandCollegium of Management and Finance, SGH Warsaw School of Economics, Warsaw, PolandWe examine how generations X, Y, and Z might react to market-moving events over short- and long-term horizons to maintain an optimal balance among risk, return, and investor preferences. To analyze various portfolio variants, we use data on selected global assets and several types of economic and non-economic events for 2000-2021H1, applying the mean-variance optimization procedure. According to our results, in optimal portfolios, fixed-income assets dominate and are the main driver of portfolio adjustments. Portfolios with short-term horizons with less risk-averse investors and those for generation Z are the most reactive to analyzed types of events. None of the events per se creates an extraordinary opportunity to increase returns. However, expansionary monetary policy generates the greatest potential for incremental returns. Our findings provide practical implications for investors on how to adjust their portfolios in response to significant market events.https://doi.org/10.2478/ijme-2024-0001market eventsrisk aversionportfolio managementportfolio vulnerabilityf21g11g15 |
| spellingShingle | Iwanicz-Drozdowska Małgorzata Rogowicz Karol Smaga Paweł Market-moving events and their role in portfolio optimization of generations X, Y, and Z International Journal of Management and Economics market events risk aversion portfolio management portfolio vulnerability f21 g11 g15 |
| title | Market-moving events and their role in portfolio optimization of generations X, Y, and Z |
| title_full | Market-moving events and their role in portfolio optimization of generations X, Y, and Z |
| title_fullStr | Market-moving events and their role in portfolio optimization of generations X, Y, and Z |
| title_full_unstemmed | Market-moving events and their role in portfolio optimization of generations X, Y, and Z |
| title_short | Market-moving events and their role in portfolio optimization of generations X, Y, and Z |
| title_sort | market moving events and their role in portfolio optimization of generations x y and z |
| topic | market events risk aversion portfolio management portfolio vulnerability f21 g11 g15 |
| url | https://doi.org/10.2478/ijme-2024-0001 |
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